Most Common Items Restoration Contractors Leave Off Their Invoices

Many restoration contractors fail to include all of the items that they should on their invoices. This can lead to them missing out on revenue. At One Claim Solution, we see contractors leave off important line items from their invoices all the time. Here are some of the most common items contractors leave off of their invoices and how neglecting to include them can lead to restoration businesses missing out on revenue.

Common Items Restoration Contractors Leave Off Restoration Invoices

Stephen Smith, an Account Manager at OCS, works with restoration contractors everyday to improve their invoices. Here’s some of the most common line items he sees contractors leave off of their invoices:

Thermal imaging
Administrative labor
Supervisor labor
Emergency service calls
Decontamination
Protective equipment

Why Contractors Might Be Missing Billable Items On Their Restoration Invoices

When contractors leave items off of their invoices, it usually comes down to one of two things, according to Stephen–contractors don’t realize that they can bill for an item, or contractors don’t want to fight with adjusters over an item.

Some contractors may not realize everything that they can bill for because they are newer to restoration contracting. Others might have attempted to bill for certain items on invoices before and then taken adjusters at their word when they told them they couldn’t bill for those things. In reality, what you can and cannot bill for is far from set in stone, and there are ways to improve your odds when negotiating over more controversial line items. Keep reading to learn how.

The other main reason contractors leave off these commonly missed items is that they are dreading long fights with adjusters about them. If you’re not careful, the time costs of negotiations can outweigh the benefits of getting paid for additional line items, and many contractors understand this. Fortunately, there are things you can do as a contractor to cut down on the time you spend on the phone arguing with adjusters so that it’s worth your time.

How to Defend Invoice Items to Adjusters

With the right strategy, you can be more successful during negotiations with adjusters.

Supporting Restoration Invoice Items With Documentation

A lot of defending the items you bill for comes down to documentation. “The more documentation, the better,” Stephen says. Taking lots of photos and keeping careful time logs can be a great way to back up your work and your invoices. “If an adjuster says, ‘You didn’t do that,’ you have a picture that says, ‘Yes, I did,’” Stephen explains. Using time logs to document things like when a supervisor was on-site can also be useful. There are a lot of different third-party apps and services to help you collect and organize documentation so that you’re in the best position possible when it comes time to negotiate with adjusters. Some of the most popular documentation software used by restoration contractors includes Encircle, Matterport, and DocuSketch.

Familiarize Yourself With Restoration Industry Standards

Familiarizing yourself with restoration industry standards like the IICRC S500 can go a long way when you’re defending items on your invoices. “If an adjuster says, ‘Hey, you can’t include that on your invoice,’ you can say, ‘I’m required to do it, so I need to bill for it,” Stephen points out.

How to Decide What’s Worth Billing For on Restoration Invoices

Ultimately, when you choose to not bill for certain items on your restoration work invoices, you’re incurring costs without recuperating them. “You’re leaving money on the table,” Stephen explains. Even if you only succeed in getting paid for those items half the time, it’s better than getting paid none of the time. The missed profits may seem small when you’re looking at an individual invoice, but over time, the money you missed out on adds up.

There’s no universal answer for when it’s worth it to invoice for and defend items that get a lot of pushback from insurance carriers. Restoration contractors have to look at their own situation and weigh the time cost of negotiations against the profit they will miss out on if they don’t bill for an item. Contractors who handle their own billing and insurance negotiations in-house might have a harder time justifying the time spent on the phone with adjusters.

Simplifying Insurance Negotiations by Partnering with One Claim Solution

Restoration contractors that partner with One Claim Solution are in a stronger position when it comes to including items on invoices that might get pushback. OCS helps contractors fight for the payment they deserve through creating stronger invoices and negotiating on their behalf with insurance carriers.

If you’re interested in learning how OCS can help you increase your restoration company’s profit, request a consultation with us. For more expert advice on navigating the restoration industry, sign up for our newsletter.